Tesla reports loss but still is on track to deliver new models

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The Silicon Valley electric car maker Tesla Motors Inc. stated the 13th straight quarterly loss. Higher expenditures on its vehicle and battery factories account for the loss incurred. The firm says that the profit will be visible once the company meets its objectives.
The Tesla's non-ending quarterly losses are the clue, what happens when you prefer your ambitious goals over profits. The company targets three times increase in models within three years. It also aims to acquire solar panel installer, SolarCity Corp. The abrupt and steep losses are the results of these undertakings. It had reported its debut quarterly profit in 2013.
Tesla led by Elon Musk claims to be still on track to deliver what it promised. It says that it will bring about 50000 new Model X and Model S vehicles. The company targets to bring the new models in the later half of 2016. It would spend $2.25 billion in capital expenditure for the upcoming Model 3 Sedan.
Jason Wheeler, the CFO chatted with the analysts on a conference call. He says Tesla has a great chance to be non-GAAP profitable. If it can produce and deliver what it aims for, there is no looking back then. The shares of the company had slight changes in after-hours trading. Earlier the share represented the$2.6 billion offer to acquire SolarCity.
James Brumley, the InvestorPlace.com analyst, is positive about Tesla. He says Tesla will remain the category leader as electric vehicles become mainstream. It could be years before the bottom line justifies any investment in Tesla other than a speculative one.
It was the second consecutive quarter that Tesla didn't meet its vehicle delivery target. The company reported last month. This makes the annual target meeting suspicious. The firm can end the year a little bit short of the target if it delivers 50000 cars till 2016 end. Its objective was of 80K to 90K vehicles this year.
Musk warned to fire the suppliers and internal team members for failing to meet their target on July 1. Tesla aims the date to begin production of Model 3. Even with the warning, the goal seems a far cry.
Tesla planned to open a new store every four days on average for rest of 2016. The new locations include Taipei, Seoul, and Mexico City. The cost of the new stores remains secretive.
According to Thomson Reuters, the analysed loss was 52 cents per share. But, Tesla lost $1.06 per share which is much steeper than expected. The quarterly net loss got a push-up. The loss amounted to $293.2 or$2.09 per share. The last year figures were $184.2 or $1.45 per share loss. The net revenue went up 33 percent to $1.27 billion.
Tesla hopes 2-3 percent increase of gross margin although an increase in the operating expenses of 30 percent is expected. Musk has ambitious plans to provide electric trucks and buses and to expand the solar energy business. His tie up with the SolarCity is a plan to provide energy solutions with reduced costs.
Musk is now the chairperson and biggest shareholder of SolarCity. He says the company will save $150 million per year. Analysts doubt the claims, though.
Tesla recently unleashed its immense battery factory. The factory is called the Gigafactory and is located in Nevada. Musk hopes exponential growth in storage battery business.